Thread
.@clydeprestowitz responds to @ChadBown on the 1986 US-Japan semiconductor agreement and perfectly encapsulates the Dept of Commerce view: "we don't want Japan to sell less, we just want them to raise their prices" www.wsj.com/articles/japan-chip-pact-1986-us-semiconductors-trade-managed-exports-11640908753?st=2gn4... via @WSJOpinion 1/5
And not just in the US market - Japan was forced to end "global" dumping in third markets, hugely controversial extraterritoriality of US antidumping law. Thanks to Commerce, US helped establish a global price floor for semiconductors - price fixing! 2/5
All this squelching of competition helped Taiwan & Korea start up production.
Another irony: when Japan's semiconductor firms got wind of a new dumping complaint, they cut back exports to the US - leading to higher prices and a DOJ antitrust investigation for collusion! 3/5
Another irony: when Japan's semiconductor firms got wind of a new dumping complaint, they cut back exports to the US - leading to higher prices and a DOJ antitrust investigation for collusion! 3/5
Lesson for Japan: if you price to low, Commerce comes after you for dumping; if you price too high, Justice comes after you for anti-competitive price fixing
Bottom line: @ChadBown is right about the problems with managed trade 4/5
www.wsj.com/articles/the-false-allure-of-managed-trade-11639666704
Bottom line: @ChadBown is right about the problems with managed trade 4/5
www.wsj.com/articles/the-false-allure-of-managed-trade-11639666704
Thank you for letting me relive my youth :)
more details here: www.nber.org/system/files/chapters/c8703/c8703.pdf
more details here: www.nber.org/system/files/chapters/c8703/c8703.pdf
